🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
70
views
21 Aug 2018

There is a pre-tax price of 5 cents per ounce on sugary beverages and they are imposing an excise tax of 1 cent an ounce. The per capita consumption is 100 ounces. Price elasticity is -1.2. What is the post tax per capita consumption?

Watch
1
answer
0
watching
70
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nestor Rutherford
Nestor RutherfordLv2
24 Aug 2018

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The following regression equations are from the study of the demand for chicken in the United States for the time period 1960 - 1982. The estimated is given below (t-statistics in parenthesis):

Y = 37.24 + .0050 (X1) - .6104(X2) + .1977 * (X3) + .0693*(X4)

(9.99) (1.031) (3.742) (3.321) (1.357)

R2 = .9424

n = 34, k = 5

Y = Per Capita Consumption of Chickens in pounds

X1= Real Disposable Income per capita in dollars

X2 = Real Retail Price of Chicken per pound in cents

X3 = Real Retail Price of Pork per pound in cents

X4 = Real Retail Price of Beef per pound in cents

a. Using this equation suppose you are given the following values of your independent/explanatory variables: X1 = 1165.9; X2 = 58.3; X3 = 123.5; X4 = 142.9. Forecast the value of chicken consumption given the specified values of each X.

b. Calculate the point price elasticity of demand for chicken given the values in part a.

Note: EP = Price Elasticity of Demand

EP = %?Q = ?Q * P

%?P ?P Q

c. Interpret the elasticity coefficient in part b.

Please show all calculations and complete explanation on how to solve this problem.

Given the following information on the quantity consumed of caviar and total utility for James Ryan; answer the following:

Quantity (in Ounces)

Total Utility (in dollars)

Marginal Utility

  
       

1

50

0

  

2

75

25

  

3

88

13

  

4

95

7

  

5

99

4

  

a) What is the Marginal Utility for each additional ounce of caviar?

b) At $12 an ounce, how many ounces of caviar should James Ryan purchase to optimize his satisfaction?

c) What is his consumer surplus at this optimal level of consumption?

 

1. The state excise tax on cigarettes in Missouri is $0.17 per pack (by far the lowest in the nation). In November 2016, citizens of Missouri voted on a ballot proposal to increase the excise tax on cigarettes by $0.60 per pack, to $0.77 cents per pack. As required by law, the state auditor issued a fiscal impact statement for this proposal; here is an excerpt from that report:

Use this information to estimate the increase in tax revenues from the proposed increase in the excise tax.

HINT #1: The auditor was sloppy in describing the elasticity for cigarettes; assume this means a price elasticity of -0.8.

HINT #2: You will need to assume that you are working with the long run supply curve (why?)

Related Documents

ECO101H1 Lecture Notes - Lecture 6: Demand Curve, Margarine, Lincoln Near-Earth Asteroid Research
indigolion451
ECO101H1 Lecture Notes - Lecture 10: Royal Ontario Museum, Inferior Good, Ss 1
chocolatezebra335
ECO 1001 Lecture Notes - Lecture 3: Root Beer, Independent Goods, Luxury Tax
orchidduck298

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in